any advice for a non-resident?

hi All,

We are expats living overseas, and our goal at the end of next 20 years is: to build a IP portofolio so there is enough passive income fo us when we come back to live in Australia, that means we will be actively looking for IPs: 2 per year at least for next 5-15 years.(both negative geared and positive geared to reach a cash neutrual status, so we don’t pay the 29% tax as non-residents. Also that when we return to oz at the end of 20 years, the negative geared ones would hopefully become positive cashflowed or has big captial gains).

I learn from chris batten that the best way is to set up a 2 trust structure: the unit trust owns IP, and issues units to the discretionary trust. the high incom earner is the trustee for the discreionary trust, so is he and his family as the beneficiaries for that trust. Its advantage is obvious: Asset protection, easy to pass it onto our child,flexible distribution, can be negatively geared when required, refinancing possiblity, also, able to transfer to DIY super fund without any CGT to pay.

But then when I start to take this idea to practice, I was told by our accoutant that since we are non resident, as the trustee for the two trust, we would’ve made the trust a non australian resident trust, therefore, it won’t enjoy a lot of the tax advantage a resident trust would have.

so my question is, as a non resident, what’s my best way to invest? What’s this hybrid trust do? would it be any good for us? We like to come home to live soon, but can’t afford until we build up our passive income stream. Please help!